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Generalized transport costs and index numbers: A geographical analysis of economic and infrastructure fundamentals

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  • Zofío, Jose L.
  • Condeço-Melhorado, Ana M.
  • Maroto-Sánchez, Andrés
  • Gutiérrez, Javier

Abstract

We rely on the economic theory approach to index numbers to improve the existing definitions and decompositions of variations in generalized transport costs (GTCs). As a value index, we decompose GTCs into price and quantity indices associated to economic—market—costs and infrastructure variables—distance and time within a network. The methodology allows the accurate identification of the sources of GTCs decline. We illustrate it for the case of road freight transportation in Spain between 1980 and 2007 and at a highly detailed geographical level. Average GTCs weighted by trade flows have decreased by 16.3%, with infrastructure driving that reduction. We find large territorial disparities in GTCs, but also significant geographical clusters where the market and network indices show spatial association.

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  • Zofío, Jose L. & Condeço-Melhorado, Ana M. & Maroto-Sánchez, Andrés & Gutiérrez, Javier, 2014. "Generalized transport costs and index numbers: A geographical analysis of economic and infrastructure fundamentals," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 141-157.
    • Handle: RePEc:eee:transa:v:67:y:2014:i:c:p:141-157
    DOI: 10.1016/j.tra.2014.06.009
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    Cited by:

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    2. Inmaculada C. �lvarez-Ayuso & Ana M. Conde�o-Melhorado & Javier Guti�rrez & Jose L. Zof�o, 2016. "Integrating Network Analysis with the Production Function Approach to Study the Spillover Effects of Transport Infrastructure," Regional Studies, Taylor & Francis Journals, vol. 50(6), pages 996-1015, June.
    3. Tsekeris, Theodore, 2016. "Interregional trade network analysis for road freight transport in Greece," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 85(C), pages 132-148.

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